State Bank of Pakistan (SBP) Governor Jameel Ahmad informed the National Assembly Standing Committee on Finance and Revenue that Pakistan is set to manage $26.2 billion in foreign loan repayments during the current fiscal year.
He indicated that $12.3 billion in deposits from friendly countries, including China, Saudi Arabia, and the UAE, will be rolled over, reducing the net repayment to $10 billion.
The governor, addressing the committee chaired by MNA Naveed Qamar, said the central bank has already paid $1.5 billion in debt, with $8.5 billion remaining for the fiscal year. He emphasised that the external sector remains manageable due to these rollovers and the expected refinancing of $4 billion in Chinese commercial loans.
Secretary Finance Imdad Ullah Bosal added that Pakistan would receive its first IMF tranche following the rollover of $4.4 billion in Chinese commercial loans and a one-year extension of loan rollovers from Saudi Arabia and the UAE.
The SBP chief assured that there are no external payment pressures, predicting foreign exchange reserves could reach $13 billion by the end of this fiscal year.
Governor Ahmad noted that Pakistan’s import of petrol, oil, and lubricants has significantly decreased from $2.5 billion to $1.4 billion per month. He projected inflation to be 13.5% for the current fiscal year, with a reduction to 7% next year. He highlighted that budgetary measures and rising energy prices could impact inflation rates.
The SBP governor mentioned that GDP growth has been constrained to 3.5% over the past decade, stressing the need to increase domestic exports by 10% to 15%. He outlined a five-year plan to stabilize the economy, which includes controlling the current account deficit, ensuring foreign exchange reserves cover three months of imports, and achieving financial stability and transparency.
During the committee proceedings, there was a heated exchange between opposition leader Omar Ayub and treasury party MNA Azhar Kiani, leading to a boycott by opposition members. Minister of State for Finance Ali Pervaiz Malik and Finance Secretary Imdad Ullah Bosal also addressed the committee, discussing support for the Benazir Income Support Programme (BISP) and poverty survey initiatives.
The SBP governor emphasised efforts to control inflation, reduce the gap between open market and interbank dollar exchange rates, and tackle issues related to Hundi and dollar smuggling. He defended the high-interest rates as necessary to curb inflation, despite criticism from committee members about the burden on government interest payments.
